Making sense of ESG ratings and benchmarks
23 November, 2022Risk webinar
Speakers: Andrew Cunningham, Chairman of the Editorial Board for the Centre for Governance, Risk and Regulation and Visiting Professor, LIBF
Kasia Chodurek, LIBF Next Gen faculty member, Interim Head of Distribution for 'FarmWorks' (Kenya)
Oliver Beroud, founder of LIBF's Centre for Governance, Risk and Regulation and Visiting Professor, LIBF
Vitaline Yeterian, Senior Vice President, DBRS Morningstar
Hundreds of providers now offer ratings on companies' ESG performance and benchmarks against which companies and investors can assess ESG compliance. These providers range from the large international credit rating agencies to boutique firms specialised in a particular area of the ESG ecosystem.
They include well-known brands such as The Economist magazine and obscure local and regional publications. Many of these providers are now engaged in mergers and acquisitions as they seek greater market share and higher margins. But the meaning of these ratings and benchmarks is often unclear, and frequently differs from one provider to another. And in this fast-moving market, the criteria used by an individual provider may change in response to new regulations or investor expectations.
This webinar considered how uncertainty and volatility in ESG ratings and benchmarks affects the risk profiles of financial institutions, and how directors and senior managers should respond.